Supporters in order to break-even for each venue option

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Reference no: EM131607816

The University at Buffalo Engineering Alumni Association (UBEAA) is interested in starting a golf tournament to raise funds to provide scholarships to future engineering students. They have identified two possible venues for this event and are trying to select the option that will raise the most funds for the scholarship fund. To attract wealthy donors, this luxury fundraising event will include a catered reception, greens fees and a golf cart rental.

Option 1: Park Country Club – Hosting the tournament at this club will cost UBEAA $6,810 in facility rental fees. The catered reception will cost an additional $60 per registrant. Green fees and cart rental will add an additional $35 per registrant.

Option2: Transit Valley Country Club - Hosting the tournament at this club will cost UBEAA $2,400 in facility rental fees. The catered reception will cost an additional $100 per registrant. Green fees and cart rental will add an additional $40 per registrant.

UBEAA will pay $5,000 to manage and promote the event throughout the community. To create a more festive feeling, they have also hired a local band to perform. The band will cost a fixed amount of $3,000, regardless of the venue selection. Tickets will be sold to the local community and UB alumni for $300 per person (regardless of venue selected) with all proceeds being placed into a scholarship fund for future UB engineering students.

(a) How many tickets will UBEAA need to sell to alumni and supporters in order to break-even for each venue option?

(b) How many tickets would need to be sold to make the two venues have the same operating income?

DO NOT USE EXCEL AND SHOW FULL WORKING STEPS - THIS INCLUDES ALL FORMULAS USED TO DERIVE ANSWER

Reference no: EM131607816

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